Buyers waiting for a more attractive price on a mid-range home are now more likely to find one in a growing number of popular regions due to economic uncertainty that’s sidelined some of the purchasing activity in these markets.

The number of metropolitan areas with high population counts and median price declines has reached its highest point since September 2023, real estate brokerage Redfin found in its study of the four-week period ending April 20. Redfin is due to be acquired by mortgage giant Rocket.

The trend is not the norm, but 11 of the 50 most populous metros did see median housing valuations soften even as the national price for a midrange home rose by 2.1% from 12 months ago. While still rising, the U.S. median is climbing at its slowest pace since July 2023.

What experts advise for homebuyers and sellers

Experts say the takeaway of these findings for those looking to purchase a house or put one up for sale is to react strategically to the current conditions.

“My advice to sellers is to price your home fairly for the shifting market; you may need to price lower than your initial instinct to sell quickly and avoid giving concessions. On the flip side, buyers should negotiate,” said Chen Zhao, Redfin’s economic research lead, in a press release. 

Buyers who are borrowing funds to purchase their homes may want to additionally consider the impact of interest rates but the better focus is on how price and borrowing costs affect the monthly payment, said Jim Nabors, president of the National Association of Mortgage Brokers.

“When people shop, they ask, ‘What is my interest rate going to be?’ You’re asking the wrong question when you ask that. You need to know what your payment is going to be and be comfortable with that. That should be your No. 1 goal,” he said.

Which markets have experienced declines and inventory surges

The largest drops seen in the metros in question include San Antonio’s 3.7%, followed by Oakland’s 3.5% and Jacksonville’s 2.2%.

Other parts of Texas where the median price has fallen include Austin, Dallas and Fort Worth. Sacramento, California, also has seen housing values fall, as has Orlando, Florida. Portland, Oregon, and Nashville, Tennessee, are the other two regions where home values have dropped.

Redfin has not been alone in reporting increased signs of slowing in the housing due to increasing inventory, or singling out some markets where the trend is particularly pronounced. 

The National Association of Realtors reported Thursday that home resales fell 5.9% in March. Zillow reported earlier that listings have climbed and prices have started to stall as supply has risen back to March 2020 levels, which the pandemic strained the spring buying season. 

Zillow, Remax and Redin respectively have reported 12-month inventory gains of 35% and 25.3%, and 20% in Washington, D.C.

Widespread government budget cuts are anticipated to drive an increase in supply and diminish demand in the Washington market with some fluctuation given some of the related job losses have been successfully challenged in court.